Cold Stone Creamery - Expansion Into Nigeria

This implies that consumers will choose cold stone ice cream over other local ice creams. The publicity rates in Nigeria are good and this means that the chance of Cold Stones success being broadcast is extremely high.
             The large population in Nigeria will also provide readily available and cheap labour for the company. The expansion of the company into Nigeria will create a symbiotic relationship While Cold Stone saves money on production costs, Nigerians are provided with job opportunities. The reduced cost of operations would facilitate the attainment of the break-even point in a shorter period .
             SECTION 3 - THE COMPETITION.
             3.1 Main Producers.
             The main producers of ice cream in Nigeria are Fan Milk Plc and Supreme Ice Cream Limited. Other producers include Chi Limited and various fast food restaurants that make and sell ice cream.
             Fan Milk Plc has been around for 51 years with seven leading products. Supreme Ice Cream has brand equity in Nigeria with an excellently planned logistics department. This places Supreme Ice Cream at the top of the ice cream industry. It is also a subsidiary of UAC Foods Limited, one of the biggest companies in the Food industry in Nigeria.
             Chi Limited, makers of Hollandia yoghurt is another competitor. Fast Food restaurants such as are Kentucky Fried Chicken, Tastee Fried Chicken, Mr Biggs, Candy Patisserie, The Ice Cream Factory, Browns Cafe and Restaurant do not have brand equity but they are well known in their individual local areas. Their low prices and business ethics put them at a comparative advantage. .
             3.2 Comparative Advantage: .
             Cold Stone is a foreign brand in its target country. According to the Sales Agent, Nnenna Esotu, this makes Cold Stone desirable because the Nigerian consumers love high quality products. Nigerian consumers tend to go for brand names. Cold Stone is a fresh brand name as opposed to Fan Ice that has been around for 50 years. Cold Stone is an organised company with many successful branches across the world while many of its competitors are sole proprietorships with only one or two branches.